Taxman ends Oddbins' hopes of rescue deal

Wine retailer Oddbins is poised to fall into administration after the taxman refused to back a potential rescue deal, putting hundreds of jobs at risk.

The struggling off-licence chain hoped to restructure its debts through a company voluntary arrangement (CVA), but HM Revenue & Customs - a significant creditor - would not support the move.

Oddbins yesterday said the firm now expects to formally enter into administration on 4 April, sparking fears for the future of its 400 staff.

The retailer, which has 89 stores including 19 in Scotland after recently shutting almost 40 branches UK-wide, is the latest victim of a troubled sector. Threshers-owner First Quench Retailing collapsed in 2009 and the Unwins chain folded in 2005.

It is understood HMRC was owed 8 million by Oddbins, accounting for some 30 per cent of the retailer's debt.

The company said a "significant" majority of creditors clearly wanted Oddbins to continue trading.

Managing director Simon Baile said he remained optimistic for the firm, revealing that a number of potential investors had come forward to buy the business, or parts of it.